Monday, September 3, 2018

Deschutes County Farmland Conversion - Motivation? Speculation? Who Benefits?

The classification and land use of Deschutes County Farmland is coming under scrutiny its the intent of conversion to development.

Who benefits?

Developers!  and....
Those that want to sell farmland that was never farmed and never worth farming for big bucks?  Those that  bought farmland for speculation and profit?  Those that worked the benefits of farmland assessment and low taxes to protect Farmland from conversion to the pressures of development?

Sounds like the Designated Forestland scam!  Farmland is on a much bigger land scale.

Bend Bulletin:
www.bendbulletin.com/localstate/.../deschutes-county-wants-to-re-evaluate-farmland

Here is a listing of County farmland for sale:
https://www.landandfarm.com/search/OR/Deschutes-County/Farm-for-sale/

This deserves some investigatory analysis!

I have no doubt that the model of developer ownership of land under Designated Forestland rules to the advantage of tax avoidance and speculation profit will be found to apply to Farmland in Deschutes County.

I almost hate to look for what I know I will find because it will keep me awake at night  thinking about how unfair the system is and how it has been gamed.

The above listing of county land farm for sale is a good place to start looking at exactly  who the owners of this farmland are?  From the link:
"Farm Land Information
The total value of 3,852 acres of farms recently listed for sale in Deschutes County, Oregon, was $62 million. The average size of farms for sale in Deschutes County was 70 acres. Farms for sale in Deschutes County feature livestock including cattle, horses and sheep. Current land applications for farms for sale in Deschutes County include for livestock, irrigation, vineyard or aquaculture uses. The Census Bureau records 131,036 acres of farmland on 1,283 farms in the county. Deschutes County's farm economy is worth an estimated $4.0 million each year. Of the 36 counties in Oregon, 2 million-acre Deschutes County ranks 11th by size. Deschutes County is located in the Southeast region of the Beaver State."

 Look at the farmhouses on these properties!  Not your grandpas farmhouse with a privy out back! I don't see many tractors in these pictures.

I think I am on the trail of something  here!  It complies with the Designated Forestland model.  Rich owners of land that not only gets some assessment break intended for purposes that is not theirs but they benefit greatly financially from that situation.  Not only from avoidance of tax but reduction in land investment carrying cost derived from reduction of tax the someway that carrying costs are reduced by low interest rates.

The way for the rich to get richer?

This is a random sample of the 67 properties for sale at the link for examination.  Not that there is any implication that speculative special interest at the expense of county tax payers is involved.  That would require analysis of the the tax records.  What kind of farm business is the owner of the property deriving their income from?  These are marketed as "farmland" properties.  Land only I would think or it is a super deal if the house goes with the land! Actually, it looks like the house goes with the land!
"Stunning, unobstructed Cascade Mountain Views from NW Style Home in Tumalo. Park like setting on 7.6 acres with 5.8 acres of Swalley irrigation water rights and pond. Custom Home is 4595 sf, 4 bedrooms,4 bathrooms, living room with woodburning fireplace, family room, master suite with office, 4th bedroom is attached accessed through 3 car garage with a gear room/guest suite, hot tub. Private setting, wonderful outdoor living, landscaped, flagline lot, paved driveway and minutes from Bend."

 This property is listed with no irrigation yet it has Swalley water rights?  Arn't they lost if not used?   Don't know about that.....

 Tax Record from Deschutes County Assessor Dial"
https://dial.deschutes.org/Real/Index/133319
https://dial.deschutes.org/Real/Index/164741
The first link is for the land:
https://dial.deschutes.org/Real/Improvements/133319
The second link is for the house. 1.5 acres
https://dial.deschutes.org/Real/Index/164741

Aha! The first link has the "tell" that the ORS requires the county assessor to put on the  tax record indicating that there is some special category information related to the assessment of the property.  What that may be is presented by the land and structure link on the property record:
https://dial.deschutes.org/Real/Improvements/133319
Land Characteristics for this Property
Land Description Acres Land Classification
Exclusive Farm Use Zoned 0.50 D6: DRY GROUND - SOIL CLASS 6
Exclusive Farm Use Zoned 2.70 D7: DRY GROUND - SOIL CLASS 7
Exclusive Farm Use Zoned 2.90 W3: IRRIGATED GROUND - SOIL CLASS 3
But: The listing says it is not irrigated, for what that is worth.  Maybe some law relating to truth in listing property?

What exactly is "Dry Ground Soil Class" other than ground that not much rain falls on?
D7: DRY GROUND - SOIL CLASS 7
Some education here:
https://www.oregon.gov/LCD/pages/soilsassessment.aspx

Maybe an overhead view of the land will give a picture of what the "Dry Land" and "Irrigated Ground" looks like?
https://dial.deschutes.org/Real/InteractiveMap/133319
Can't hardly tell which is which but maybe this is a case of what lying eyes tell me.

Tax for this 6.1 acre Property Class 550 - Farm property: $14.28
https://dial.deschutes.org/Real/Index/133319
It has been that low in the range of paltry since 1996.

The listed current owners bought the land for $1,200,000 date of sale 6 July 2018 with multiple accounts involved in the sale.



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